Birmingham-based firm Recycled Polymers has appointed liquidators after a range of factors had an impact on the business.
Founded in 2011, Recycled Polymers was taking recycled PP, PS and ABS and turning it into pellets for use by injection moulders.
After overcoming initial difficulties with equipment it had purchased that meant it could not meet orders, it then started to break even.
However, bad weather last summer meant that orders from garden products manufacturers dropped off or were cancelled, and this also coincided with a fall in the price of virgin material meaning that the price of the recycled material it was selling also fell.
In addition, a Landlord’s Distraint was also placed on the business in December 2012 meaning it had to meet the demands of its creditors for its facility.
It was this, plus the fall in orders and prices that led to the failure of the business.
A sales agreement was entered into with Plasgran Limited on 21 December 2012 for substantially the whole of the business and the assets following legal and professional advice.
Liquidators Bridgewood Financial Solutions were appointed to place Recycled Polymers Limited into a Creditors’ Voluntary Liquidation on 2 January 2013.
In a report to creditors, the business said: “Fundamentally, the business was being built on a professionally managed basis, doing things properly and building a quality infrastructure capable of operating in a growing market.
“The collapse of the market first due to weather and then prices and margins happened at a vulnerable time, just as the final piece in a capital investment plan was being put in place, and the cash flow could not be sustained to carry on trading in spite of more investment without orders and fair prices.”